China Negotiating $100 Billion
Energy Deal With Iran.

Tuesday, December 20, 2005
http://worldtribune.com

China is in talks to conclude a $100 billion oil and natural gas contract with Iran that would cement Beijing's presence in the Middle East market.

A Chinese delegation has been discussing with Iran's Oil Ministry a deal for the purchase of 250 million tons of liquefied natural gas and crude oil over 25 years.

This was the second attempt by Beijing to complete such a deal over last year.

In October 2004, Iran signed a Memorandum of Understanding with China's Sinopec for oil and LNG Exports, Middle East Newsline reported.

Under the MoU, China would also help develop Iran's onshore Yadavaran oil field and purchase 150,000 barrels of oil per day.

Iran has vowed to change the terms of the MoU.

Officials said the new government in Tehran has opposed granting foreign contractors a production share as a means of payment for energy development.